Representatives of all parts of the Digital Out-of-Home Entertainment (DOE) Industry met last week at the second annual DOE Network Association (DNA) Conference, held at USC’s Davidson Conference Center. Many of the attendees are involved in pressing the limits of digital technology and physical design to greatly expand the storytelling and engagement possibilities of out-of-home venues.

Consultant Randy White of White Hutchinson Leisure gave some troubling statistics specific to the arcade industry. While other forms of discretionary entertainment spending, such as movie attendance, has been holding relatively steady, 60% of arcade dollars have shifted to home entertainment and ‘stay-cations’ in the last five years.

BMI Gaming’s David Young said that one of the arcade industry’s responses has been to encourage and recognize innovation through an international design competition. This year’s winner was Speed of Light; a vertical, button-based, two-player version of wack-a-mole with a lot of flashing lights.

Americans go to the movies on average 4 times per year. But they eat out approximately 167 times per year. Dining is a highly social experience. The top 20% of income households account for 48% of out-of-home spending. Mr. White recommended that arcades redesign their facilities to attract this upscale market with restaurants, wifi-equipped lounges, and games that allow for more group social and competitive activities. One audience member noted that this would redefine the businesses that arcades compete with to include coffee shops, shared work spaces, hotel lobbies, and other social gathering spots.

Kevin Williams, the organizer of the DNA conference, spoke forcefully of the DOE industry’s need to embrace technology to a far greater degree than it has to date. There is no reason, he argued, why devices could not recognize players when they return to a facility, coordinate communications as they interact with devices throughout the facility, and – if they opt-in – connect them with people who have similar interests and skill levels anywhere on the planet. The technology already exists to offer experiences outside of the physical environment to patrons that could motivate them to return to the facilities. The DOE industry can compete with rapidly improving home and personal entertainment options by offering attractive, safe locations to socialize, access high-end specialized devices, and have location-specific blended physical and virtual experiences. It is critical, he added, that equipment be software-upgradeable so that experiences can be regularly refreshed.

One example of a business doing this is MagiQuest (http://magiquest.com), a Harry Potter-like world with home-play, clan-building, and location-based components. Players can buy physical objects, like wands and capes, as well as virtual goods that aid in gameplay. With 15 physical locations in the US and Japan, MagiQuest offers a unique, integrated on-site and virtual game and social experience.

The ETC’s Phil Lelyveld moderated a panel on 3D Interactive Entertainment Experiences in Public Places, which more accurately covered 3D, 4D, 5D, 6D, and 7D experiences. 3D is stereoscopic visuals. 4D adds motion and effects, while 5D includes a live performance component. Interactivity in addition to all of the above is called 6D. 7D, as one vendor stated, is for customers who want more than 6D – Spinal Tap’s ‘the dial goes to 11.’

The immersive theatrical, walk-through, and cart-based experiences that the companies at this conference have developed match or exceed those found in the major theme parks. In fact, many of these companies have been involved in developing attractions for those parks. For example, Alterface developed an interactive 6D dark ride in Germany that, they claim, predates and is more complex than Toy Story Mania at Disney California Adventure. Thinkwell Design’s installation at the Fernbank Nature Quest, Atlanta, Ga., makes very effective use of augmented reality and simulations in their educational experience design – including a scientifically accurate, interactive river simulation walkway with fish, plants, and turbulance. (Watch a Fernbank video here: http://fernbankmuseum.org/naturequest/ )

3D projections onto building surfaces, ‘the other 3D,’ are increasingly in demand for both event programming and advertising. Oscura Digital discussed their amazing projection over the Zayed Mosque, the second largest mosque in the world, in Abu Dhabi, UAE (Video http://www.youtube.com/watch?v=WfOyK_lxKbQ , story http://www.youtube.com/watch?v=WfOyK_lxKbQ ). Pearl Media, which proudly self-brands itself as a ‘guerilla marketing firm,’ discussed how they always get permits, but do not always ask permission from the building owner when they install their temporary work. They have developed real-time rendered 3D projections that crowds can interact with via tablet controllers. Their projection onto a bagel store in Austin, TX during the SXSW conference increased bagel sales three-fold at the location. Pearl Media also does very clever interactive storefront installations that capture pedestrians’ attention and imagination (see http://www.pearlmediaus.com/interactive.php )

To sustain and grow the DOE sector, and to compete with other experiences, a number of show developers framed their work in terms of preshow, show, and post-show components (See photo).In some locations, the preshow has become so engaging that patrons have to be encouraged to move on when the main attraction is ready for them.

The key presentations given at this conference will be edited and distributed as both a physical book and e-book. Overall, the DNA conference was an interesting window into an industry that is using digital tools to create engaging storytelling, learning, and advertising experiences. Their work can inform what the traditional entertainment and CE industry is planning.

Vuzix is now shipping their Wrap 1200 3Ds, a pair of $500 glasses (a headtracking model called the 1200VR is coming later this month) that displays a 75-inch virtual screen in front of your face and supports 3D content. You have separate focus settings for each each eye and these are as light and small as a standard pair of sunglasses.

The Vuzix 1200s also allow you to wear your own prescription lenses under the device.

I’ve used earlier Vuzix video glasses on flights before and, barring the dork-feel of wearing a pair of video glasses, the experience is fairly interesting and impressive. Now, however, with HD, 3D and a huge screen these things could, feasibly, replace a standard monitor in some situations.

The glasses include a pair of headphones for audio and you can buy optional DVI adapters and light shields as well as a head-position sensor for more advanced tricks like real-time VR. The future, as they say, is already here. It’s just not evenly distributed.

Verizon Joins the Executive Board of the Entertainment Technology Center at USC

Verizon Enterprise Solutions will lend its technology expertise to the Entertainment Technology Center at the University of Southern California (ETC@USC) through a seat on ETC@USC’s executive board. Verizon’s global cloud, IP and wireless networks, managed security services, end-to-end digital content solutions and technology-related professional services are used by media and entertainment companies to create, transport, manage and deliver digital content around the world, on any platform, anytime.

ETC@USC is a nonprofit, member-funded entertainment technology think tank and research center, affiliated with the USC School of Cinematic Arts. It brings together senior executives, innovators, thought leaders and catalysts in a neutral setting to explore issues related to the creation, distribution and consumption of entertainment content. Verizon’s participation on the executive board will provide media and entertainment companies with opportunities to learn how Verizon’s media-focused solutions, network and technology expertise can help the industry transform its future.

“The goal of the ETC@USC is to bring industry and technology experts together to develop the solutions that will propel us through the next 20 years,” said Kenneth Williams, CEO and executive director of the ETC@USC. “Verizon’s broad set of technologies and deep industry experience will provide a unique voice on the executive board. We look forward to their active participation.”

Scott Spector, global head of Verizon’s media and entertainment vertical, added: “Verizon is committed to the media and entertainment industry, and our participation with ETC@USC will allow us to support and potentially drive innovation in the industry. There’s a vast range of opportunities to integrate technology and improve everything from digital content production through digital distribution, creating an optimal experience for the industry.”

Verizon Enterprise Solutions creates global connections that generate growth, drive business innovation and help shape tomorrow’s biggest ideas. With industry-specific solutions provided over Verizon’s secure mobility, cloud, strategic networking and advanced communications platforms, Verizon helps open new opportunities around the world for innovation, investment and business transformation. Visit www.verizonenterprise.com to learn more.

The Entertainment Technology Center at the University of Southern California (ETC@USC) is a think tank and research center within the USC School of Cinematic Arts that brings together senior executives, innovators, thought leaders, and catalysts from the entertainment, consumer electronics, technology, and services industries along with the academic resources of the University of Southern California to explore and to act upon topics and issues related to the creation, distribution, and consumption of entertainment content. ETC@USC helps drive collaborative projects among its member companies and engages with next generation consumers to understand the impact of emerging technology on all aspects of the entertainment industry, especially technology development and implementation, the creative process, business models, and future trends. (www.etcenter.org)

Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York, is a global leader in delivering broadband and other wireless and wireline communications services to consumer, business, government and wholesale customers. Verizon Wireless operates America’s most reliable wireless network, with more than 108 million retail connections nationwide. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and delivers integrated business solutions to customers worldwide. A Dow 30 company with more than $127 billion in 2014 revenues, Verizon employs a diverse workforce of 177,300. For more information, visit www.verizon.com/news/.